Optimism remains for energy sector despite recent layoffs in Calgary

Canada's usually booming energy sector is shrinking slightly. Still, there is a sense of optimism about where the industry is headed.

More than 204,000 Canadians are working in the energy industry right now—the majority here in Alberta.

Acquisitions, mergers and downsizing are taking place frequently, but even job losses announced last week at ConocoPhillips aren’t dampening the spirits of energy experts.

Instead, there is a sense of optimism about where the sector is headed.

Canada’s usually booming energy sector is shrinking slightly.

In September, the country counted 204,200 energy workers, but that was down about 500 jobs from August, according to Statistics Canada.

And year over year, compared to 2024, employment in the sector was down nearly five per cent, or about 10,500 energy jobs.

But new pipelines could turn the tide.

“If Alberta or Saskatchewan has good pipeline exposure and transportation exposure to (the) east and west coast(s), then Canada’s future is very bright,” said Hemanta Sarma, a professor of oil and gas engineering at the University of Calgary.

For now, the job losses appear to be piling up.

Last week, U.S.-based ConocoPhillips announced it would lay off staff in Calgary to be more efficient with the resources it has.

Nine hundred and fifty employees work for the company in Canada.

“I have been in this industry for 40-plus years, and I was with the industry before I switched to academia in Australia in 2002. I have seen the cycles. So Conoco moving out is not necessarily bad news for Canada. When one door closes, two doors open,” Sarma said.

The sector did see major growth last month in refining and pipelines, with more than 11,000 jobs added.

American company Sunoco is wrapping up a deal to buy Calgary-based Parkland for more than $12.5 billion this Friday.

“I think initially there were some concerns that we’re letting an American company come in and acquire possibly strategic assets of the Burnaby refinery and some of the gas stations that we have here,” said Ernest Wong, head of research at Baskin Wealth Management, in an interview with BNN Bloomberg.

“But there were commitments made by Sunoco in a way that they would maintain investment in the refinery and also maintain the headquarters and jobs in Calgary.”

Amid a frosty relationship with the U.S., experts say this deal will only help attract more international stakeholders seeking a piece of the energy pie in Canada.

“A U.S. company is coming in and being able to purchase a Canadian company with a relatively smooth approval process. I think this bodes well for foreign investment,” Wong said.

Cenovus Energy’s takeover of MEG Energy also appears poised to win shareholder approval later this week.